D.KRISHNAMOORTHY Vs. REGISTRAR OF CO-OPERATIVE SOCIETY

JUDGEMENT

(1.) The petitioners are the President and the Vice-President of the Perambur Cooperative Building Society Ltd. These writ petitions assail the proceedings of the 1st Respondent dtd. 1/6/2021 suspending the petitioners, in exercise of powers under Sec. 76-A of the Tamil Nadu Cooperative Societies Act, 1983 (hereinafter referred to as "the Act"), for a period of 6 months pending an inquiry under Sec. 81 of the said Act.

(2.) The petitioners were elected as the President and Vice President, respectively, during the elections conducted in 2018 for a period of 5 years. The Joint Registrar (Inspection Cell) gave a report dtd. 20/5/2021to the Deputy Registrar of Cooperative Societies (Housing), the 2nd Respondent herein, to the effect that an inspection was conducted in the Society and certain serious violations were identified during inspection. Consequently, a recommendation was made to conduct an inquiry under Sec. 81 of the Act. Acting on this report, an inquiry was ordered by the 2nd Respondent through proceedings dt. 24/5/2021 under Sec. 81 of the Act and a senior inspector was appointed as the inquiry officer. Pending the inquiry, the 2nd Respondent sent a proposal to the 1st Respondent to suspend the petitioners in the interest of the Society since there was prima facie evidence involving criminal misconduct and serious violations. The 1st Respondent on receipt of recommendations of the 2nd Respondent issued the impugned proceedings dt. 1/6/2021 suspending the Petitioners for 6 months from 1/6/2021, in exercise of powers under Sec. 76-A of the Act. These writ petitions assail the aforesaid orders dtd. 1/6/2021.

(3.) The Respondents have filed a counter affidavit and an additional counter affidavit. It is stated in the counter affidavit that on the inspection conducted by the Joint Registrar (Inspection Cell), it was found that the Board of Management, without getting any administrative sanction and without following the procedure had allotted 0.18 cents of vacant land belonging to the society in favor of one Mr. Murugan by entering into a lease agreement with him on 24/9/2020. A further allegation made in the counter affidavit is that the property was leased for a period of 11 years and the vacant site was handed over to the said Mr. Murugan for a paltry lease amount of Rs.25,000.00.00 per month. Therefore, according to the Respondents, a property with a market value of more than Rs.5.00 crores has been let out for a monthly rent of Rs.25,000.00and this property is situated at a prime locality. By virtue of this lease deed, the lessee has been permitted to put up permanent structures and the society is incurring a huge loss. On such serious violations being identified at the time of inspection, an inquiry has been ordered under Sec. 81 of the Act and an inquiry officer has also been appointed. Since the respondents found prima facie material pointing to violation of rules, breach of trust and serious irregularities in allotment of land, it was decided to place the petitioners under suspension pending Sec. 81 inquiry.